Despite producing yields that are 40% of cassava, yams’ value still far outweighs any other crop produced in Africa because of its high value as a cash crop. Improved cultivation of yam, therefore, provides the most promise for alleviating poverty. The economics of yam provide critical insight to addressing the cultural and technical problems associated with achieving food security in Africa. Dansi et. al. state that producing tolerant cultivars are the most sustainable, economically profitable, and environmentally-friendly solution to yam production. Minimally, the cost of clean yam ‘seeds’ or small yam tubers must be reduced to boost profitability. Furthermore, based on a recent YIIFSWA report on promoting AYMT (Adapted Yam Minisett Technology), there are also significant cultural barriers to overcome towards enabling profitability and entrepreneurship for sustainable agricultural development.
The most economically profitable are D. cayensis, D. alata, and D. rotundata. In some countries, organic farming can enable a price premium. While International trade may hope to alleviate these vast variations, currently international trade is somewhat limited by scarcity of propagules and import/export regulations. For example, while Jamaica was able to generate roughly $20M annually by exporting 5% of its yields between 2010-12, increased phytosanitary regulations limited their trade; however, Costa Rica was able to fill this void somewhat. Meanwhile in Africa, according to Asumugha et. al., there were no reports of inter-regional trading between Nigeria and neighboring countries; thus smuggling was apparent.
Unfortunately, huge variations exist in reported costs and revenues based on seasonality, country, and subregion. For example, in Nigeria, the largest cost is labor at 83% while in Ghana the largest price is seed at 58%; this is in part explained by the large differences in yields (i.e. 48M tons in Nigeria v. 6.3M tons in Ghana) and prices. Reported market prices also not only contradict one another but fluctuate throughout the season. Demonstrably, here are two accounts of Nigerian market prices of seed yam: (1) YIIFSWA noted a range between 50 and 120 Naira with severe price hikes occurring after seed yam harvest (~October) and another as the planting season approaches (~March); (2) alternatively, Enatyo et. al. (2010) reported an average market price of seed yam well below this range of N4500/120 tubers or N37.50/tuber. Further, price also varies significantly between species/variety, especially with increasing demand. Notably, farmers tend to be conservative, preferring familiar local landraces; further, demand is sometimes subjugated by gender preference.
//photo Ghana yam price fluctuationTwo reports, one for the Democratic Republic of Congo and one for commercial growers in Nigeria, stipulates that growing clean yam seeds is not profitable. Thus, in most cases, the cost of clean seed production must be offset by ware yam (yam for consumption) production. Adapted Yam Minisett Technology (AYMT) in Nigeria has return on investments (ROI) ranging between 158% and 520% based on region (i.e. annual incomes of N522,420, N220,203, and N40,980 respectively in the North/Central, Southwest, and Southeastern regions).
Big costs associated with seed production
Ultimately, towards greater food security, the solution is straightforward: lower costs (of clean seeds especially) and higher yields. Low-cost clean seeds is a clear ‘low hanging fruit’; in the worst case scenario, potato ‘seed’ tubers bear the weight of 25% of costs. Thus, whether comparing Ghana’s 58% or Nigeria’s____%, it’s evident that yam seed costs are relatively astronomical. Other targets for lowering costs include mechanized processes to reduce labors and greater profitability to enable farmers to access loans
In addition to farm-to-table consumption, yams maintain other viable for-profit avenues with applications to medical, cosmetic, chemical, and food industries. Some species are particularly noteworthy for their use in medical application (see Medical Uses) including production of diosgenine, a derivative of cortisone, testosterone, and progesterone. Additionally, high-value secondary metabolites include flavonoids, sterols, carotenoids, tocopherols, and terpenes. Yam peels have also been demonstrated as a cost-effective substitute for rabbit feed, and thereby likely other higher value nutraceuticals. Kikuno et. al. also provided its potential as a distilled spirit. In combination with the improved sprouting efficiency of the ‘head’ portion of yam minisetts, a holistic, entrepreneurial approach would be to sprout yam seed ‘heads’, substitute or supplement animal feed with yam peels, and reserve the (peel-less) middle for fermentation/distillation.
Even when yam cultivation is profitable, these profits are often forfeited due to a culture which disfavors wealth accumulation as well as planning (i.e. for investment). Furthermore, because of yams’ long growth period, it is difficult and rare for farmers to have substantial means to invest in yam seed at the planting season; therefore, farmer are forced into high-interest loans. For more specifics, please see the economics page under research.